Buffalo Boy's Blog

Back in September when this whole Wallstreet bailout came out, I called it. It should not have been done without government oversight. It probably shouldn't have been done period. Let AIG go down in flames, they did it to themselves. As it turns out, the money being used as part of this $700 billion dollar bailout is not being used the way it should have been.

It was supposed to free up the credit markets, help the banks to prevent people from foreclosing on their homes and help keep the over all health of the loan market somewhat stable.

That however, has not happened. Some executives at AIG are getting $3-4 million dollar bonuses. I want to work there. You get $3-4 million for running your business into the ground? Nice business! Sign me up.

Congress grilled Neel Kashkari who is the "interim assistant treasury secretary" said this about the bonuses:

"When asked if Treasury believed that level of executive compensation was appropriately curbed according to the stipulations in the bailout bill, Kashkari said that it seemed excessive, but he could not give an assessment of individual bonus levels."

Seemed excessive? A bonus of $3 million is excessive for an executive of any company much less a failing one. This is probably going to be the result of this failed economy. CEO salaries are going to come down. I don't think we are going to see Obama be the one redistributing the wealth, Americans as a whole are sick of seeing $3-4 milliong dollar bonuses paid out to CEOs who fail their companies. Hell, Americans question CEO salaries regardless of the health of the company.

Im impressed though. Congress is following up and they want answers and proof of where this money is going. Barney Frank, D. Mass. is the leader of the committee who is asking those questions and having become familiar with Barney and watching him on Real Time and on AM 1520, I can tell you that if there are answers to be had, he will get them. He's a firey bastard and I can only imagine his outrage.

I was even more impressed with Donald Manzullo R-Ill who threatened Kashkari with his job. Why shouldn't they threaten his job. There is no answer as to how effective this thing is, it was a $700 billion check to no where and its allowed the very financial institutions that were failing before, to fail for a little longer and the next time they fail, they aren't getting a cent.

This is so far just the first half of the bailout. There is still $350 billion to go that Henry Paulson has not asked for. I think its going to be a tough sell for congress to allow that money to leave the taxpayers hands. They should take that money off the table unless Paulson and the treasury come up with a plan that will inform everyone from the president to each and every single American citizen where that money is going and to whom, and then what it is to be specifically used for when it gets there. No freebie hand out after this. This next half comes with strings or let the economy hit rock bottom.